Purchasing a home is most likely the largest financial transaction of your life. Unfortunately, most people enter into this transaction blindly and make mistakes that may cost them tens of thousands of dollars over the lifetime of their loan.

So, I have created a free guide that contains extremely valuable information designed to help you avoid costly mistakes when navigating the mortgage loan process.

To receive this free guide and other home buying tips, simply fill out the fields below and I will send you your first insider secret by email immediately.

First Name:

E-mail:

Cell Phone #:

By supplying me with your email address, you are granting your permission for me to communicate with you personally via Email, Phone or SMS Text. We will not rent or sell your information. Message and data rates may apply. Every email sent will have a link to automatically opt you out of the mailings.

Conventional Loan Eligibility

A conventional loan tends to follow Fannie Mae and Freddie Mac guidelines. Banks and other financial institutions issue a conventional loan – sometimes referred to as ‘regular loans.” A conventional loan is privately backed – unlike the government-issued FHA, VA and USDA loans. Because it’s the banks that put their “necks on the line,” guidelines and eligibility requirements tend to be more stringent than some of the federal loan programs.

There are many advantages for those that qualify for a conventional loan. Call 720-598-0506 to learn more about why a conventional loan might be right for you.

Below are some of the general eligibility requirements of a conventional loan. Because each case is different, make sure to call us to determine if you qualify.

Down paymentMost loans require between a 3% and 20% down payment. Mortgage insurance may be an option for those who cannot put down the full 20%.

DocumentationYou’ll need to provide proof of your:

income stability

job history

residences from the past two years

income tax filings

paystubs

(This is just an initial list of paperwork that will need to be provided. Based on your income, assets, liabilities and profits more paperwork may be requested.)

Also, if you are not a U.S. citizen, residency or visa paperwork may be required.

Why such a big process to apply for a conventional loan?

If you think about it – the banks are taking a big risk to loan you enough money to buy a house. They receive thousands of applications each week from hopeful homeowners and investors requesting to borrow funds. To determine who is likely to repay the loans, the banks must set eligibility requirements. Unlike the FHA, VA loans and USDA loans that are backed by the government, there is more risk to the private lenders when they issue a conventional loan. Therefore, stricter guidelines apply.

While a conventional loan may have the strictest eligibility guidelines, they often prove to be the most advantageous loan option for those who qualify.

The conventional loan experts at Leader One will be with you step-by-step to walk you though the process. If there is any way that you may be eligible for a conventional loan, they will make it happen.

To learn more and see if you meet conventional loan eligibility requirements, contact me at 720-598-0506.